Appendix A: Basic Investment Decision Making Based on Chart Analysis
We further observe that the short‐term chart seen in Figure A.3 depicts rather
bearish price action, especially with price gapping down directly to level D, with
the subsequent rebound being rejected at level C. All this is very bearish to the
stock in the short term.A.5.3 participatory Options for the Short‐ and
Medium‐Term Bearish Trader
For the more risk seeking short‐ to medium‐term bearish trader, we recommend
shorting into the stock should it breach its current support level with a stop placed
above at around $505 to $510, and continuing to scale in more short positions,
preferably on profit, as price keeps declining. Another great shorting opportunity
may well be the establishment of new short positions at the retest of the long‐term
uptrend line, as seen in Figure A.4.